NBA - Main

I'll never understand why people don't understand why this happens. It's so absurdly simple:

• Team wants new stadium
• Team demands current city pay for stadium, else team will run away to one of a dozen other cities who would happily pay for the stadium instead
• Either current city pays up to not lose the team, or team relocates to city who will pay
• The end

People can debate the positive/negative economics of it all day long, but it's really neither here nor there. Bringing in a pro sports team to your city is a politically super popular move, and politicians only care about whatever helps them win their next election.

This won't be popular. But, they usually are not owned by the team. It's owned by the city and they take money off the top for concerts, etc. They just subsidize the crap out of the Arena for the "anchor" tenant which is usually an NBA or NHL team by giving them handouts. Stadiums wouldn't be built if they didn't make money for the surrounding businesses. Field of Schemes and a lot of anti-arena people don't understand or only paint a narrative otherwise. Also people don't get up in arms when cities lure companies with subsidies too. There's more to it.

Cause this is America and the country caters more towards the 1% than the 99%

It’s also because no politician actually has the balls to do what is right.

Bill Simmons' best ever take is the "billionaire should pay for their own stadiums" take.

Sounds like those billionaires need to just lay off the avocado toast and fancy coffee, pull theirselves up by their bootstraps, and write that check.

Because billionaires can ask and hold moving the team over the heads of the council and mayor. Making one of the reasons to own a sports team as "real estate scam."

Because the threat of leaving is a big one. Teams have a lot of leverage in these scenarios.

I mean, billionaires are very notably cheap sons of bitches

Is it much different than tax dollars being used to bail out privately owned companies?

Because they promise jobs, increased local business uptake, new and improved restaurant and consumer based infrastructure. You have to look outside the box of “tax loophole” and think about the trickle down economic effects of the publicly funded money. Taxpayers money is helping the area where the stadium will be built. Plus it’s a lot of jobs that can temporarily employ people during the construction. Then you have to feed those workers and those workers will slightly stimulate the local economy during that construction period.

The best is the economic impact studies assume the only 2 options are 1) Taxpayer funded renovation or 2) Relocate the team

Completely ignores 3) Privately funded renovation and 4) Maintain currently perfectly fine facility

That's just it, they're not owned by the billionaires. Billionaires know what a pain in the ass owning commercial real estate is, so it's a lot easier and cheaper to be a tenant.

It’s a racket. They make all the money you pay for it. But it’s the same as big pharma with the vaccines. Publicly funded research, publicly funded free vaccines but the pharmaceutical companies made all the money

Well, usually the facility is used for more than the NBA. Concerts and other Events stimulte the economy and help local businesses and provide jobs. Not saying those billionaire owners need a break, but unless the venue is used by only the NBA team there should be joint cost. Sports and entertainment salaries are just bananas. Until players and movie stars command less money along with greedy owners/entertainment companies, it will only get more ridiculous. Watching sports/concerts/live events is quickly becoming impossible financially for anyone but the extremely wealthy.

Socialism for the rich only

I wrote my final paper in school on this. Even privately funded arenas cost cities and country 100s of millions in infrastructure improvements.

And before people argue about developments occurring around arenas, any economic development has been show to just be shifted from what would have happened in the city regardless. Building an arena just concentrates certain development around it without being additive